Price discrimination, entry, and switching costs in network competition
| Autor: | Trifunović Dejan, Mitrović Đorđe |
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| Jazyk: | angličtina |
| Rok vydání: | 2016 |
| Předmět: | |
| Zdroj: | Ekonomski Anali, Vol 61, Iss 209, Pp 129-159 (2016) |
| Druh dokumentu: | article |
| ISSN: | 0013-3264 1820-7375 |
| DOI: | 10.2298/EKA1609129T |
| Popis: | This paper reviews theoretical models of network competition in telecommunications. We will discuss two alternative approaches. The first approach assumes Hoteling’s horizontal differentiation and the second approach is based on switching costs. We will first analyse spatial competition with linear prices and continue with price discrimination between on-net and off-net calls. Price discrimination can also be used to deter entry to the market. We will also deal with the regulator’s optimal choice of access price, which should be designed to induce entry of new firms. Furthermore, pricing of roaming services and the switching cost approach to network competition will be considered. Finally, we will illustrate the theoretical results with data from the Serbian mobile and fixed telephony market. |
| Databáze: | Directory of Open Access Journals |
| Externí odkaz: |
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